Life Underwriter

Definition - What does Life Underwriter mean?

A life underwriter is the person who stands in between a life insurance company and an insurance agent to evaluate whether an applicant for life insurance may pass for acceptance. The job that an underwriter does is called underwriting, which is the process of analyzing and evaluating the risks carried by an applicant for insurance. Part of the functions of an underwriter is the determination of the amount of premium that the applicant will pay.

Insuranceopedia explains Life Underwriter

Life underwriters base their evaluation of an applicant's risks on the information written in the application form. Modern underwriting employs computer software to determine the level of risk for insurance applicants. If the standard evaluation is breached, the life underwriter may resort to other mechanisms for evaluation such as current medical condition, medical history, job functions, financial standing and other factors that help establish the realistic level of risks carried by the applicant. Oftentimes, a life insurance agent is mistakenly called a life underwriter.

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